NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

When Is It Optimal to Abandon a Fixed Exchange Rate?

Sergio Rebelo, Carlos A. Vegh

NBER Working Paper No. 12793
Issued in December 2006

---- Acknowledgements -----

We thank L. Goldberg, P. O. Gourinchas, M. Klein, A. Razin, and seminar participants at the NBER, Federal Reserve Bank of New York, Maryland, Princeton, and University of Pennsylvania for their comments. We are particularly grateful to R. Flood, F. Zilibotti, and two anonymous referees for their suggestions. Financial support from the National Science Foundation and UCLA Academic Senate is gratefully acknowledged. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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